[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:00.90,0:00:04.86,Default,,0000,0000,0000,,The informal markets of Africa\Nare stereotypically seen
Dialogue: 0,0:00:04.86,0:00:06.85,Default,,0000,0000,0000,,as chaotic and lackadaisical.
Dialogue: 0,0:00:07.16,0:00:09.91,Default,,0000,0000,0000,,The downside of hearing the word informal
Dialogue: 0,0:00:09.91,0:00:12.76,Default,,0000,0000,0000,,is this automatic grand\Nassociation we have,
Dialogue: 0,0:00:12.76,0:00:14.40,Default,,0000,0000,0000,,which is very negative,
Dialogue: 0,0:00:14.40,0:00:18.79,Default,,0000,0000,0000,,and it's had significant consequences\Nand economic losses,
Dialogue: 0,0:00:18.79,0:00:20.21,Default,,0000,0000,0000,,easily adding --
Dialogue: 0,0:00:20.21,0:00:24.30,Default,,0000,0000,0000,,or subrtacting 40 to 60 percent\Nof the profit margin
Dialogue: 0,0:00:24.30,0:00:26.87,Default,,0000,0000,0000,,for the informal markets alone.
Dialogue: 0,0:00:27.16,0:00:31.60,Default,,0000,0000,0000,,As part of a task of mapping\Nthe informal trade ecosystem,
Dialogue: 0,0:00:31.60,0:00:36.63,Default,,0000,0000,0000,,we've done an extensive literature review\Nof all the reports and reseach
Dialogue: 0,0:00:36.63,0:00:39.02,Default,,0000,0000,0000,,on cross-border trade in East Africa,
Dialogue: 0,0:00:39.02,0:00:40.71,Default,,0000,0000,0000,,going back 20 years.
Dialogue: 0,0:00:40.96,0:00:45.21,Default,,0000,0000,0000,,This was to prepare us for field work\Nto understand what was the problem,
Dialogue: 0,0:00:45.21,0:00:49.37,Default,,0000,0000,0000,,what was holding back informal trade\Nin the informal sector.
Dialogue: 0,0:00:49.99,0:00:53.31,Default,,0000,0000,0000,,What we discovered over the last 20 years
Dialogue: 0,0:00:53.31,0:00:57.49,Default,,0000,0000,0000,,was nobody had distinguished\Nbetween illicit,
Dialogue: 0,0:00:57.49,0:01:01.84,Default,,0000,0000,0000,,which is like smuggling or contraband\Nin the informal sector,
Dialogue: 0,0:01:01.84,0:01:04.20,Default,,0000,0000,0000,,from the legal but unrecorded,
Dialogue: 0,0:01:04.20,0:01:06.42,Default,,0000,0000,0000,,such as tomatoes, oranges --
Dialogue: 0,0:01:06.42,0:01:07.48,Default,,0000,0000,0000,,fruit.
Dialogue: 0,0:01:07.81,0:01:10.04,Default,,0000,0000,0000,,This criminalization,
Dialogue: 0,0:01:10.04,0:01:13.46,Default,,0000,0000,0000,,what in Swahili refers to as "Biashara,"
Dialogue: 0,0:01:13.46,0:01:15.39,Default,,0000,0000,0000,,which is the trade or the commerce,
Dialogue: 0,0:01:15.39,0:01:16.71,Default,,0000,0000,0000,,versus "Magendo,"
Dialogue: 0,0:01:16.71,0:01:18.79,Default,,0000,0000,0000,,which is the smuggling or contraband.
Dialogue: 0,0:01:18.93,0:01:22.27,Default,,0000,0000,0000,,This criminalization\Nof the informal sector,
Dialogue: 0,0:01:22.27,0:01:23.27,Default,,0000,0000,0000,,in English,
Dialogue: 0,0:01:23.27,0:01:26.16,Default,,0000,0000,0000,,by not distinguishing these aspects,
Dialogue: 0,0:01:26.16,0:01:31.78,Default,,0000,0000,0000,,easily can cost each African economy\Nbetween 60 to 80 percent addition
Dialogue: 0,0:01:31.78,0:01:34.68,Default,,0000,0000,0000,,on the annual GDP growth rate
Dialogue: 0,0:01:34.68,0:01:36.78,Default,,0000,0000,0000,,because we are not recognizing\N
Dialogue: 0,0:01:36.78,0:01:40.88,Default,,0000,0000,0000,,the engine of what keeps\Nthe economies running.
Dialogue: 0,0:01:41.01,0:01:44.51,Default,,0000,0000,0000,,The informal sector is growing jobs\Nat four times the rate
Dialogue: 0,0:01:44.51,0:01:46.47,Default,,0000,0000,0000,,of the traditional formal economy,
Dialogue: 0,0:01:46.47,0:01:48.64,Default,,0000,0000,0000,,or "modern" economy, as many call it.
Dialogue: 0,0:01:48.97,0:01:52.46,Default,,0000,0000,0000,,It offers employment and income\Ngeneration opportunities
Dialogue: 0,0:01:52.46,0:01:55.87,Default,,0000,0000,0000,,to the most "unskilled"\Nin conventional disciplines.
Dialogue: 0,0:01:56.28,0:01:59.91,Default,,0000,0000,0000,,But can you make a french fry\Nmachine out of an old car?
Dialogue: 0,0:02:00.48,0:02:04.08,Default,,0000,0000,0000,,So, this, ladies and gentlemen,
Dialogue: 0,0:02:04.08,0:02:06.82,Default,,0000,0000,0000,,is what so desperately needs\Nto be recognized.
Dialogue: 0,0:02:07.21,0:02:11.51,Default,,0000,0000,0000,,As long as the current assumptions\Nhold that this is criminal,
Dialogue: 0,0:02:11.51,0:02:12.76,Default,,0000,0000,0000,,this is shadow,
Dialogue: 0,0:02:12.76,0:02:14.43,Default,,0000,0000,0000,,this is illegal,
Dialogue: 0,0:02:14.43,0:02:18.74,Default,,0000,0000,0000,,there will be no attempt at integrating\Nthe informal economic ecosystem
Dialogue: 0,0:02:18.74,0:02:21.69,Default,,0000,0000,0000,,with the formal or even the global one.
Dialogue: 0,0:02:22.97,0:02:25.98,Default,,0000,0000,0000,,I'm going to tell you\Na story of [Teresea],
Dialogue: 0,0:02:25.98,0:02:29.98,Default,,0000,0000,0000,,a trader who overturned\Nall our assumptions,
Dialogue: 0,0:02:29.98,0:02:33.41,Default,,0000,0000,0000,,made us question all the stereotypes\Nthat we'd gone in on
Dialogue: 0,0:02:33.41,0:02:36.20,Default,,0000,0000,0000,,based on 20 years of literature review.
Dialogue: 0,0:02:37.68,0:02:42.99,Default,,0000,0000,0000,,[Teresea] sells clothes under a tree\Nin a town called Malaba
Dialogue: 0,0:02:42.99,0:02:45.36,Default,,0000,0000,0000,,on the border of Uganda and Kenya.
Dialogue: 0,0:02:45.94,0:02:48.11,Default,,0000,0000,0000,,You think it's very simple, don't you?
Dialogue: 0,0:02:48.81,0:02:51.63,Default,,0000,0000,0000,,We'll go hang up new clothes\Nfrom the branches,
Dialogue: 0,0:02:51.63,0:02:52.70,Default,,0000,0000,0000,,put out the tarp,
Dialogue: 0,0:02:52.70,0:02:53.70,Default,,0000,0000,0000,,settle down,
Dialogue: 0,0:02:53.70,0:02:54.70,Default,,0000,0000,0000,,wait for customers
Dialogue: 0,0:02:54.70,0:02:55.74,Default,,0000,0000,0000,,and there we have it.
Dialogue: 0,0:02:55.98,0:02:59.38,Default,,0000,0000,0000,,She was everything we were expecting\Naccording to the literature,
Dialogue: 0,0:02:59.38,0:03:00.44,Default,,0000,0000,0000,,to the research.
Dialogue: 0,0:03:00.54,0:03:02.98,Default,,0000,0000,0000,,Right down to she was a single mom,
Dialogue: 0,0:03:02.98,0:03:04.34,Default,,0000,0000,0000,,driven to trade,
Dialogue: 0,0:03:04.34,0:03:05.83,Default,,0000,0000,0000,,supporting her kids.
Dialogue: 0,0:03:07.09,0:03:09.70,Default,,0000,0000,0000,,So what overturned our assumptions?
Dialogue: 0,0:03:09.86,0:03:11.27,Default,,0000,0000,0000,,What surprised us?
Dialogue: 0,0:03:11.27,0:03:15.02,Default,,0000,0000,0000,,First, [Teresea] paid the county\Ngovernment market fees
Dialogue: 0,0:03:15.02,0:03:16.87,Default,,0000,0000,0000,,every single working day
Dialogue: 0,0:03:16.87,0:03:19.94,Default,,0000,0000,0000,,for the privilege of setting\Nup shop under her tree.
Dialogue: 0,0:03:20.15,0:03:22.32,Default,,0000,0000,0000,,She's been doing it for seven years,
Dialogue: 0,0:03:22.32,0:03:24.24,Default,,0000,0000,0000,,and she's been getting receipts.
Dialogue: 0,0:03:24.56,0:03:25.93,Default,,0000,0000,0000,,She keeps records.
Dialogue: 0,0:03:26.27,0:03:29.41,Default,,0000,0000,0000,,We're seeing not a marginal,
Dialogue: 0,0:03:29.41,0:03:30.78,Default,,0000,0000,0000,,underprivileged,
Dialogue: 0,0:03:30.78,0:03:35.86,Default,,0000,0000,0000,,vulnerable African woman trader\Nby the side of the road,
Dialogue: 0,0:03:35.86,0:03:36.86,Default,,0000,0000,0000,,no.
Dialogue: 0,0:03:36.86,0:03:40.72,Default,,0000,0000,0000,,We were seeing somebody who's keeping\Nsales records for years.
Dialogue: 0,0:03:40.72,0:03:46.93,Default,,0000,0000,0000,,Somebody who had an entire ecosystem\Nof retail that comes in from Uganda
Dialogue: 0,0:03:46.93,0:03:48.68,Default,,0000,0000,0000,,to pick up inventory.
Dialogue: 0,0:03:49.17,0:03:53.32,Default,,0000,0000,0000,,Someone who's got handcarts\Nbringing the goods in,
Dialogue: 0,0:03:53.32,0:03:56.28,Default,,0000,0000,0000,,[or the] mobile money agent\Nwho comes to collect cash
Dialogue: 0,0:03:56.28,0:03:57.67,Default,,0000,0000,0000,,at the end of the evening.
Dialogue: 0,0:03:57.67,0:04:00.98,Default,,0000,0000,0000,,Can you guess how much [Teresea] spends
Dialogue: 0,0:04:00.98,0:04:01.98,Default,,0000,0000,0000,,on average
Dialogue: 0,0:04:01.98,0:04:04.60,Default,,0000,0000,0000,,each month on inventory --
Dialogue: 0,0:04:04.60,0:04:07.56,Default,,0000,0000,0000,,stocks of new clothes\Nthat she gets from Nairobi?
Dialogue: 0,0:04:07.87,0:04:10.15,Default,,0000,0000,0000,,1,500 US dollars.
Dialogue: 0,0:04:10.58,0:04:16.09,Default,,0000,0000,0000,,That's around 20,000 US dollars\Ninvested in trade goods and services
Dialogue: 0,0:04:16.09,0:04:17.43,Default,,0000,0000,0000,,every year.
Dialogue: 0,0:04:17.66,0:04:19.24,Default,,0000,0000,0000,,This is [Teresea],
Dialogue: 0,0:04:19.24,0:04:20.57,Default,,0000,0000,0000,,the invisible one,
Dialogue: 0,0:04:20.57,0:04:21.85,Default,,0000,0000,0000,,the hidden middle.
Dialogue: 0,0:04:22.60,0:04:26.65,Default,,0000,0000,0000,,And she's only the first rung\Nof the small entrepreneurs,
Dialogue: 0,0:04:26.65,0:04:30.77,Default,,0000,0000,0000,,the microbusinesses that can be found\Nin these market towns,
Dialogue: 0,0:04:30.77,0:04:33.77,Default,,0000,0000,0000,,at least in the larger Malaba border,
Dialogue: 0,0:04:33.77,0:04:35.65,Default,,0000,0000,0000,,she's at the first rung.
Dialogue: 0,0:04:36.67,0:04:39.22,Default,,0000,0000,0000,,The people further up the value chain
Dialogue: 0,0:04:39.22,0:04:42.35,Default,,0000,0000,0000,,are easily running\Nthree lines of business,
Dialogue: 0,0:04:42.35,0:04:47.34,Default,,0000,0000,0000,,investing 2,500 to 3,000\NUS dollars every month.
Dialogue: 0,0:04:47.87,0:04:51.92,Default,,0000,0000,0000,,So the problem turned out\Nthat it wasn't the criminalization.
Dialogue: 0,0:04:51.92,0:04:57.07,Default,,0000,0000,0000,,You can't really criminalize someone\Nyou're charging receipts from.
Dialogue: 0,0:04:57.07,0:05:02.46,Default,,0000,0000,0000,,It's the lack of recognition\Nof their skilled occupations.
Dialogue: 0,0:05:03.15,0:05:07.17,Default,,0000,0000,0000,,The bank systems and structures\Nhave no means to recognize them
Dialogue: 0,0:05:07.17,0:05:08.68,Default,,0000,0000,0000,,as microbusinesses,
Dialogue: 0,0:05:08.68,0:05:10.14,Default,,0000,0000,0000,,much less the fact that,
Dialogue: 0,0:05:10.14,0:05:11.36,Default,,0000,0000,0000,,you know,
Dialogue: 0,0:05:11.36,0:05:13.53,Default,,0000,0000,0000,,a tree doesn't have a forwarding address.
Dialogue: 0,0:05:14.02,0:05:16.14,Default,,0000,0000,0000,,So she's trapped in the middle.
Dialogue: 0,0:05:16.36,0:05:18.82,Default,,0000,0000,0000,,She's falling through the cracks\Nof our assumptions.
Dialogue: 0,0:05:18.82,0:05:22.30,Default,,0000,0000,0000,,You know all those microloans\Nto help African women traders?
Dialogue: 0,0:05:22.65,0:05:25.53,Default,,0000,0000,0000,,They're going to loan her\N50 dollars or 100 dollars.
Dialogue: 0,0:05:25.53,0:05:27.03,Default,,0000,0000,0000,,What's she going to do with it?
Dialogue: 0,0:05:27.03,0:05:29.62,Default,,0000,0000,0000,,She spends 10 times\Nthat amount every month
Dialogue: 0,0:05:29.62,0:05:31.25,Default,,0000,0000,0000,,just on inventory,
Dialogue: 0,0:05:31.25,0:05:33.55,Default,,0000,0000,0000,,we're not talking [about]\Nthe additional services
Dialogue: 0,0:05:33.55,0:05:35.39,Default,,0000,0000,0000,,or the support ecosystem.
Dialogue: 0,0:05:35.86,0:05:39.60,Default,,0000,0000,0000,,These are the ones who fit\Nneither the policy stereotype
Dialogue: 0,0:05:39.60,0:05:42.03,Default,,0000,0000,0000,,of the low-skilled and the marginalized,
Dialogue: 0,0:05:42.03,0:05:44.92,Default,,0000,0000,0000,,nor the white-collar,\Nsalaried office worker
Dialogue: 0,0:05:44.92,0:05:46.81,Default,,0000,0000,0000,,or civil servant with a pension
Dialogue: 0,0:05:46.81,0:05:49.96,Default,,0000,0000,0000,,that the middle classes\Nare allegedly composed of.
Dialogue: 0,0:05:50.12,0:05:54.81,Default,,0000,0000,0000,,Instead, what we have here\Nare the [proto...],
Dialogue: 0,0:05:54.81,0:05:58.53,Default,,0000,0000,0000,,these are the fertile seeds\Nof businesses and enterprises
Dialogue: 0,0:05:58.53,0:06:00.36,Default,,0000,0000,0000,,that keep the engines running.
Dialogue: 0,0:06:00.59,0:06:02.27,Default,,0000,0000,0000,,They put food on your table.
Dialogue: 0,0:06:02.27,0:06:03.83,Default,,0000,0000,0000,,Even here in this hotel,
Dialogue: 0,0:06:03.83,0:06:05.39,Default,,0000,0000,0000,,the invisible ones,
Dialogue: 0,0:06:05.39,0:06:08.49,Default,,0000,0000,0000,,the butchers, the bakers\Nthe candle-stick makers.
Dialogue: 0,0:06:08.77,0:06:12.36,Default,,0000,0000,0000,,They make the machines that make\Nyour french fries and they make your beds.
Dialogue: 0,0:06:12.36,0:06:15.77,Default,,0000,0000,0000,,These are the invisible businesswomen\Ntrading across borders.
Dialogue: 0,0:06:17.12,0:06:19.65,Default,,0000,0000,0000,,All on the side of the road,
Dialogue: 0,0:06:19.65,0:06:22.41,Default,,0000,0000,0000,,and so they're invisible\Nto data gatherers.
Dialogue: 0,0:06:22.85,0:06:26.51,Default,,0000,0000,0000,,And get mashed together\Nwith the vast informal sector
Dialogue: 0,0:06:26.51,0:06:31.48,Default,,0000,0000,0000,,that doesn't bother to distinguish\Nbetween smugglers and tax evaders
Dialogue: 0,0:06:31.48,0:06:34.29,Default,,0000,0000,0000,,and those running illegal whatnot,
Dialogue: 0,0:06:34.29,0:06:38.12,Default,,0000,0000,0000,,and the ladies who trade\Nand who put food on the table,
Dialogue: 0,0:06:38.12,0:06:40.20,Default,,0000,0000,0000,,and send their kids to university.
Dialogue: 0,0:06:40.44,0:06:43.35,Default,,0000,0000,0000,,So that's really what I'm asking here.
Dialogue: 0,0:06:43.68,0:06:46.52,Default,,0000,0000,0000,,That's all that we need\Nto start [by] doing.
Dialogue: 0,0:06:46.88,0:06:50.09,Default,,0000,0000,0000,,Can we start by recognizing the skills,
Dialogue: 0,0:06:50.09,0:06:51.36,Default,,0000,0000,0000,,the occupations?
Dialogue: 0,0:06:51.53,0:06:56.18,Default,,0000,0000,0000,,We could transform the informal economy\Nby beginning with this recognition
Dialogue: 0,0:06:56.18,0:07:00.88,Default,,0000,0000,0000,,and then designing the customized\Ndoorways for them to enter
Dialogue: 0,0:07:00.88,0:07:03.12,Default,,0000,0000,0000,,or integrate with the formal,\N
Dialogue: 0,0:07:03.12,0:07:04.50,Default,,0000,0000,0000,,with the global,
Dialogue: 0,0:07:04.50,0:07:05.91,Default,,0000,0000,0000,,with the entire system.
Dialogue: 0,0:07:06.15,0:07:07.92,Default,,0000,0000,0000,,Thank you ladies and gentlemen.
Dialogue: 0,0:07:07.92,0:07:09.48,Default,,0000,0000,0000,,(Applause)